SPRING HILL, Tenn. (WKRN) — The owner and chief executive operator of a Spring Hill-based company that owned and operated laboratories was sentenced in connection with a multi-million dollar Medicare and Medicaid kickback conspiracy.

According to the U.S. Attorney's Office for the Middle District of Tennessee, 57-year-old Fadel Alshalabi owned and operated Crestar Labs, LLC., which operated in Texas and Maryland in addition to Tennessee. He and co-conspirators were sentenced for entering "sham contracts and pa[ying] illegal kickbacks in exchange for laboratory genetic tests." They also allegedly targeted older and low-income patients who were federal health care program beneficiaries through door-to-door marketing and at area health fairs to obtain genetic material to conduct tests.

Purported telemedicine doctors—like 71-year-old Dr. Benjamin Toh, of Illinois, who was sentenced to 13 months in prison for conspiracy to violate the Anti-Kickback Statute—were paid kickbacks in exchange for signing off on laboratory orders sent to Crestar Labs. The DOJ said Toh signed orders for hundreds of patients he allegedly did not know and never contacted and received $20 per order.

While the laboratory tests were conducted, many patients testified at trial that they never received their results at all. Those who did receive the results often did not understand them and doctors like Toh never followed up with the patients.

Through Crestar Labs and other laboratories his company operated, Alshalabi billed Medicare and Medicaid for the genetic tests and often claimed reimbursement of more than $10,000 per test. Over the course of the conspiracy, Alshalabi billed more than $129 million for lab tests and was paid more than $35 million. Once paid, Alshalabi paid kickbacks to marketing companies in exchange for referrals. Through the company, Alshalabi paid more than $12 million in illegal kickbacks and bribes.

Alshalabi was sentenced to five years in prison for conspiracy to violate the Anti-Kickback Statute and money laundering. Toh also received one year of supervised release and has been ordered to pay $495,000 in restitution.

Many others were previously convicted for participating in the same conspiracy. For more information about their charges, sentencing and role in the conspiracy, follow this link.

News Source : https://www.wkrn.com/news/local-news/owner-of-spring-hill-lab-company-sentenced-in-medicare-kickback-conspiracy/